Whatever your political views, there’s no dispute that Mitt Romney has been extremely successful as an investor. At Bain Capital, Romney used the power of private equity to earn huge returns by investing in underperforming companies, turning these businesses around and sharing in the profits. Investing like Romney requires millions… Read More

When he was head of General Electric (NYSE: GE), Jack Welch had one rule for his company: Be the top player in the field, or don’t even bother. The numbers backed him up. Business school professors repeatedly teach that an industry leader can have up to twice the… Read More

An American tradition may soon follow the way of the horse buggy and oil-fired street lamps. In fact, this tradition is as American as baseball, apple pie and even Chevrolets. It will be sad to see it go, but in its place comes efficiency… Read More

When looking for “the next big thing,” it’s imperative to cast a wide net. Consider this: In 2011 the world’s growth domestic product (GDP) totaled $69.9 trillion. Of that only about $15.1 trillion came from the U.S… Read More

An options price is determined by a variety of factors, but volatility, the amount an underlying stock’s price is expected to move, is one of the most important factors to consider when trading options. If a stock is highly volatile, there is a greater chance that it will reach the option‘s strike price. With low-priced, high-volatility stocks, we can often trade inexpensive at-the-money options to take advantage of low-risk trading opportunities based on volatility rather… Read More

An options price is determined by a variety of factors, but volatility, the amount an underlying stock’s price is expected to move, is one of the most important factors to consider when trading options. If a stock is highly volatile, there is a greater chance that it will reach the option‘s strike price. With low-priced, high-volatility stocks, we can often trade inexpensive at-the-money options to take advantage of low-risk trading opportunities based on volatility rather than price. Bank of America (NYSE: BAC) is a low-priced stock (under $10) that has traded with a high amount of volatility during the past year. In the past 15 weeks, BAC is up more than 30%. That reversed a 32% decline in the previous 11 weeks. In the 15 weeks prior to that, BAC was up 105% after falling 30% in 13 weeks. BAC’s history of volatility is well established, and given this, I would expect options to price in a move of at least 25%-30% over the next four months. But the January 2013 options… Read More

If tax rates rise and government spending slows next year, the economy is expected to fall into a recession, according to the nonpartisan Congressional Budget Office. Some political pundits insist that Congress and the… Read More

Your subscription to The Daily Paycheck is now eligible for renewal. $FIRSTNAME$, As a valued Daily Paycheck subscriber, I am pleased to invite you to lock in the lowest renewal rate we… Read More

The earnings cycle is widely followed by economists and some long-term investors, but traders often overlook the state of the economy when they develop their… Read More

It’s no secret that stocks have enjoyed a big run higher in 2012, with especially strong gains in the major market averages during the past three months. It’s also no secret that much of these gains can be attributed to the… Read More

Over time, the nation’s major department stores have always sought to provide consumers with a unique shopping experience. Sears Holdings (Nasdaq: SHLD) was known for a healthy mix of hardware and appliances along with the usual assortment of clothes, jewelry and shoes. Kohl’s (NYSE: KSS) was known for a solid… Read More